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Is Green Dot (GDOT) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Green Dot (GDOT - Free Report) . GDOT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.16, while its industry has an average P/E of 21.92. GDOT's Forward P/E has been as high as 21.53 and as low as 9.56, with a median of 16.28, all within the past year.

Finally, investors should note that GDOT has a P/CF ratio of 10.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.26. Within the past 12 months, GDOT's P/CF has been as high as 30.62 and as low as 9.22, with a median of 18.13.

If you're looking for another solid Financial Transaction Services value stock, take a look at PagSeguro Digital (PAGS - Free Report) . PAGS is a # 2 (Buy) stock with a Value score of A.

Shares of PagSeguro Digital are currently trading at a forward earnings multiple of 13.31 and a PEG ratio of 0.57 compared to its industry's P/E and PEG ratios of 21.92 and 1.16, respectively.

Over the last 12 months, PAGS's P/E has been as high as 51.58, as low as 9.53, with a median of 23.33, and its PEG ratio has been as high as 1.34, as low as 0.34, with a median of 0.75.

Additionally, PagSeguro Digital has a P/B ratio of 2.41 while its industry's price-to-book ratio sits at 5.54. For PAGS, this valuation metric has been as high as 10.61, as low as 1.70, with a median of 4.89 over the past year.

These are just a handful of the figures considered in Green Dot and PagSeguro Digital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GDOT and PAGS is an impressive value stock right now.


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